The Burger Barn is evaluating the Quick Fry French fryer, which has an initial cost of P60,000.
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Question:
The Burger Barn is evaluating the Quick Fry French fryer, which has an initial cost of
P60,000. The new equipment will allow Burger Barn to save on costs and sell more
fries. The annual expected net income increase is P13,800. The machine salvage
value of P2,500 at the end of its 5-year useful life. Determine if it is worthwhile to invest
in the fryer at a minimum interest rate of 5%.
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